A rapidly weakening economy and sharp cuts in interest rates have driven the pound down against the dollar and euro.

At one stage this year, the pound fell more than 20 percent against the euro and nearly 30 percent against the U.S. dollar from its peak of above $2.

Late in New York trading on Tuesday sterling traded against the U.S. dollar at around $1.6460 and at 0.8525 to the euro.

"I think that what is clear is that we are a very attractive market for inward investment. The state of the pound has allowed us to export our way out of the recession," he told Sky's "Jeff Randall Show."

"There's no doubt that the state of the currency markets has enabled us and companies in Britain to export more."

The pound has recovered slightly in recent months and reached an eight-month high against the dollar this week.

(Reporting by Avril Ormsby; Editing by James Dalgleish)